EUR/USD: Digesting Recent Gains

By IBT Staff Reporter On 08/06/10 AT 8:14 AM

The pair remains biased to the upside despite its present price hesitation. This suggests that its present price action is corrective of its recent run to the upside. If however, its corrective tone fails, its May 03'10 high at 1.3310 will be targeted with a cut through there aiming at the 1.3691 level, its April 12'10 high. This view is consistent with its short term uptrend triggered from the 1.1875 level. Alternatively, to reverse its current bullish bias, a violation of the 1.3109 level and the 1.3000/27 levels, its psycho level/July 20'10 highs will have to occur to create scope for more downside towards the 1.2721 and the 1.2466 levels. Another support lies at its .50. Fib Ret (1.1875-1.2466 rally) at 1.2169 and then the 1.2162 levels, its Jun 14'10 low.